Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
& k7 w( Q1 d1 c4 d* p/ k5 @these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
9 w; h: ]. d. eEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
- x3 @& ]) I5 W' U3 B. {6 s' n; Z( aA year ago these things would have spiked the price of crude oil by at
# v3 A5 E% X+ @4 y/ jleast $50.00 per barrel. Today, oil price declined by a record amount.
$ X7 j( ^: b1 N( V, j' Z/ u6 o
; w  `9 H+ K! d
: w1 p1 y$ n/ Q7 }1 l" I+ UThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


; n& I9 Z/ C" T' @) j1. New oil has been found in Canada, Montana, North & South Dakota and
7 [3 M* B! H+ r" e. ^- Tin the ocean near Brazil. Each of these oil fields has more oil than
8 U! J, e. ~7 `  Y0 FArabia.

  E9 m: V5 p: a% `  `
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

* ~4 d2 @5 `, T
/ L; U" r( V) n5 v/ h1 W3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

# ~6 o1 i. |6 V8 h0 ?
! |6 M. G+ c7 m: S. D. Q" w4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
/ K% ]6 H4 j: d' ^& n1 Xracing to produce bio fuels.
8 P" Q" i$ ~: [8 X* h( G$ n+ @

5. Virtually every restaurant in the US and all food processing plants
! R0 R, K; t) B& R) ^are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
' T# r* F" J8 ]' Z) D/ Q4 x, H$ uto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
2 X0 v" H5 ^4 A1 q- G" ~& q

. y& z( u  p0 q' m3 s6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
8 {/ ^7 y/ s. b4 C* Xexpected to be built in the future. Much of the energy they produce
will replace oil.


$ D& ]8 F& X3 g" M( R+ w7. Every company in any form of transportaion business is replacing
& I) ^, h; ?3 Y0 `2 p. G; A- Lolder equipment such as trucks, airplanes, train engines, ships, etc.
+ {: g( W- o7 o2 g, cwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
4 v* l, m! v, H7 J& v, X% v9 y% mequipment.
9 ~  `8 y) ~" O8 Y% u& H: M

& `1 h  P9 B  z/ WAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

- O5 \6 D- W/ X! m
8. Cities and counties throughout the US are selling the rights to
1 }, A" L" `" m9 l; jcapture methane gas from landfills. This is a huge source of gas
( F# V+ |% W6 K( M% vavailable at very little cost or risk. The gas is displacing crude
" g) V2 [3 |4 V6 ^oil.
& H! H; s3 K+ j8 r* f# L8 p

9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
+ `. f: H* l; |! M6 U0 \- toil wells.

) P. a& W$ ^! b% x& z% L, V
3 s' S9 K% _1 W2 x10. Solar, wind and ocean energy is displacing oil as an energy
. q  \2 a* l) I/ o& H- e6 q5 Tsource. Three new wind turbines are being erected every day in the US.

( G. {" A" q6 I! y& _  A
Each of the above by itself will not make a large difference in the
0 F0 _! Q9 }0 M: f2 Uprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.

) q& R& e' u3 H6 W* h* E; a
/ E8 A- L- E; r  k6 w$ PWith the above scenario, I still believe that there are under
) K; o; p* @* U. b, [performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
# T$ Y8 q( f3 v3 K7 d* j% V
8 ~" g4 b2 R  g- K( O' E
9 H# Q' e5 z: P/ t2 U. eThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only